Your 1st priority is to take care of your family – do what is best for your family within your means (and legal…) in this circumstance and you will be fine.
No house is worth the stress your probably under.
This is my 3 step plan for you given the stated goals above:
1. Take care of yourself so you can take care of your family – and Start listening to Joel Osteen (google it) if you don’t already – it’s free.
2. Consult with a foreclosure/financial counselor – most counties offer this service for free.
3. Do not turn to this forum for help – your probably already beating yourself up enough already you don’t need anymore of that…